Ajinomoto (Malaysia) Bhd will be diversifying its product offering to include food products in addition to its seasoning products in its bid to become a leading food company by 2020.
The group, well-known for its Ajinomoto Umami Seasoning, a world-renowned brand of monosodium glutamate (MSG), plans to venture into this new business segment during the current financial year ending March 2018.
“We target to achieve a 7% share from food product sales by 2020,” said its CEO Keiji Kaneko.
Keiji said the group had yet to decide on the food products it will be marketing but added that they will include both products imported from its overseas affiliates as well as in-house made products.
Ajinomoto Malaysia hopes to emulate the line of food products being offered by its regional counterparts such as Thailand, which supplies 3-in-1 as well as canned coffee drinks, in addition to seasoning products.
Keiji said the group also intends to increase its export markets in the Middle East, where it currently has a large presence in Saudi Arabia and also operates in Oman, Yemen and Jordan.
Currently, export sales contribute 35% of Ajinomoto Malaysia's revenue, 20% of which comes from Saudi Arabia. The remaining 65% is contributed by domestic sales.
Ajinomoto Malaysia reported a 4.3% growth in sales revenue to RM114.93 million (US$26.82 million) for the 4th quarter ended March 2017.
Keiji said the food business will be its new growth driver after seasoning products, in its efforts to achieve RM686 million (US$160 million) in revenue by 2020 and RM1 billion (US$233.3 million) by 2025. It registered a sales turnover of RM420 million (US$98 million) last year.
More details on the new venture into food business will be revealed at a later stage.